Eight Crypto Groups Lobby to Add Blockchain Regulatory Certainty Act to Market Structure Bill

Eight crypto policy organizations have joined forces to push Congress to include the Blockchain Regulatory Certainty Act (BRCA) in the forthcoming market structure legislation. The groups insist this amendment is crucial for protecting developers and infrastructure providers in the cryptocurrency and decentralized finance (DeFi) spaces.

Push to Add Blockchain Regulatory Certainty Act to Market Structure Bill

The groups, including the DeFi Education Fund, Coin Center, Solana Policy Institute, Digital Chamber, Blockchain Association, Crypto Council for Innovation, Bitcoin Policy Institute, and Paradigm, have issued a joint statement urging Congress to add the BRCA to the Market structure legislation. They believe the inclusion of BRCA would provide essential regulatory safeguards to developers who do not hold or control customer funds.

“We are united in our commitment to protecting the software developers building our financial future,” said the organizations in their statement. Many in the industry see the BRCA as a safeguard, in particular for decentralized finance (DeFi) developers who do not want to unfairly be treated like traditional financial institutions.

While blockchain developers are building non-custodial software, the groups say they should not be forced to comply with business regulations which govern entities that keep customer assets. “It’s critically important that we don’t treat open-source developers like traditional financial institutions,” stated one policy lead, emphasizing the importance of clear regulatory distinctions.

Bipartisan Support for the Blockchain Regulatory Certainty Act

The Blockchain Regulatory Certainty Act (BRCA) was introduced by Rep. Tom Emmer and is now backed by Rep. Ritchie Torres, receiving bipartisan support. According to the groups, the amendment addresses a key concern within the industry: the misapplication of financial regulations to blockchain service providers that do not engage in money transmission.

That would prevent developers and service providers who don’t fit this narrative from being wrongly categorized as “money transmitting businesses,” which imposes a huge compliance burden.

The BRCA was also highlighted by the groups as the key to encouraging innovation and giving developers the regulatory certainty they need to operate securely in a shifting digital asset environment. They also encouraged lawmakers to adopt the amendment in order to ensure that the United States remains a global leader in blockchain technology and DeFi innovation.

CLARITY Act Potential to Shape Crypto Regulation

The Digital Asset Market Clarity Act, which is being reviewed by Congress, aims to bring greater clarity to the regulation of digital assets. According to Ripple’s Chief Legal Officer Stuart Alderoty, the CLARITY Act is a big step forward in the quest to establish a complete regulatory environment around the crypto market.

Alderoty believes that the bill could be a standard for future crypto policies. According to him, the introduction of CLARITY Act reflects a growing understanding by lawmakers of the significance of blockchain and its distinguishing features.

While the Market Structure Bill has also been well supported by many in the crypto industry, not all lawmakers support it. Rep. Maxine Waters has voiced concerns about the influence of figures like US President Donald Trump on crypto legislation. Waters has described the market structure bill as part of broader “crypto corruption,” casting doubt on the motivations behind the bill.